With 98% of businesses now wanting a Human Resource Information System (HRIS), the demand for efficient, all-in-one HR solutions is high. Companies want platforms to manage payroll and employee engagement in one tool.
This is where Paylocity stands out. It offers a range of features like automated payroll, time tracking, benefits administration, employee self-service, and advanced reporting tools. But does Paylocity truly meet business needs as users have mixed opinions?
In this in-depth Paylocity review, we cover its features, pros, cons, and integrations, and compare Paylocity with its competitors. Keep reading to know whether it is suitable for business owners and growing enterprises or not.
What is Paylocity?
Paylocity is both an HRIS (Human Resource Information System) and an HCM (Human Capital Management) system. It manages core HR data like payroll and benefits. Besides this, it supports workforce strategies like talent development and employee engagement.
Paylocity was founded in 1997 and its headquarters are located in Schaumburg, Illinois. It provides a unified platform for payroll, workforce management, talent acquisition, employee self-service, and employee engagement. This comprehensive approach helps businesses manage HR functions better and focus on growth.
The platform offers solutions for better communication and cooperation, such as social engagement tools, peer recognition programs, and real-time feedback channels. These features encourage collaboration, facilitate teamwork, and boost employee morale.
Paylocity expanded its offerings by acquiring Airbase Inc., a provider of spending management software, in September 2024. Paylocity leverages modern technology and employee experience to streamline HR operations, reduce administrative effort, and accelerate business growth.
Detailed Features of Paylocity
Here is a detailed explanation of all the complete set of Paylocity features:
1. Payroll
Paylocity's payroll software automates the whole payroll process, ensuring that employees receive correct and timely compensation. It handles complex computations, tax filings, and compliance procedures, lowering the chance of errors.
2. Payroll Readiness Dashboard
This tool provides a comprehensive overview of critical payroll tasks. It ensures all required actions are completed on time before processing day.
3. Configurable Pre-Submit Audits
Paylocity HCM offers over 40 customizable audits that detect issues like duplicate payments before payroll submission, reducing errors. It ensures compliance with policies and sets off real-time alerts for HR teams.
4. 401(k) and Benefits Integration
Paylocity helps businesses connect with systems by sharing information about 401(k) and retirement plans. Its simple integration options promote smooth data transfer, cutting down on manual tasks and errors.
5. Tax Compliance Support
Paylocity platform's tax geolocation feature verifies employee setups for accurate tax configurations by location. This software automatically identifies local, state, and federal tax requirements. Additionally, it helps to lower compliance risks and penalties.
6. Global Workforce Management
Paylocity's Global Payroll streamlines payment for domestic and international employees in one system, covering over 100 countries. It reduces manual tasks and compliance issues, providing real-time data, customizable reports, and expert support worldwide.
7. Human Resources Management
Paylosity provides a complete HR management system with employee self-service, compliance tracking, and document management. These tools help HR teams manage employee data and compliance effectively.
8. Time and Labor Management
Paylocity's time and labor solutions make it easier to schedule, track hours, and manage attendance. They offer automatic time tracking and real-time reports to help manage labor costs, payroll accuracy, and legal compliance.
9. Talent Management
The talent management system from Paylocity offers resources for learning development, performance management, onboarding, and recruitment. These assist businesses in attracting talent, streamlining the hiring process, and fostering employee development.
10. Employee Experience
Paylocity focuses on improving the employee experience with tools like community forums, recognition programs, and surveys. These features boost engagement and workplace culture.
11. Benefits Administration
The benefits administration platform from Paylocity streamlines the enrollment, setup, and compliance management steps. Important data, notifications, and enrollment statuses are displayed on an easy-to-use dashboard to help with better planning and budgeting.
12. HR Reporting and Data Analytics
Paylocity's HR Reporting software offers real-time employee data and performance metrics for trend analysis. Its AI Assistant helps access important information for decision-making.
13. Airbase Spend Management
Paylocity and Airbase combine to streamline financial operations and spending management. By automating data syncing, reporting, and approvals, this integration lowers errors and saves time. Payroll and costs can be managed by businesses on a single platform.
14. Employee Self Service
Paylocity provides an Employee Self-Service (ESS) tool that helps employees and managers with HR tasks. Employees can access pay stubs, request time off, and update personal info. Managers can track attendance and approve requests instantly.
Paylocity Pricing
Paylocity provides customizable pricing plans based on each company's unique requirements. Several variables, such as the size of the business, particular features, and needs, affect pricing. Companies can request a demo via Paylocity's website or get a personalized estimate by getting in touch with them directly.
✅ Pros of Using Paylocity
According to the customer reviews these are the benefits of using Paylocity:
- Wide Range of Products: Paylocity provides several capabilities, such as benefits administration, time and labor management, and onboarding. It enhances HR effectiveness on a single platform.
- Responsive Customer Service: Based on feedback many users like Paylocity's customer service. They said that the customer support team is responsive, dedicated, and friendly.
- Employee Self-Service: It allows employees to obtain pay stubs, request time off, and update personal information without taking HR’s permission.
- Automated Compliance: Paylocity helps organizations stay compliant with ever-changing regulations. It does so providing automated tax filing and compliance tracking features.
- Customizable Workflows: Customers appreciate Paylocity's adaptability. They value Paylocity's ability to create unique processes for time-off requests, performance assessments, and onboarding.
❌ Cons of Using Paylocity
As per the customer reviews these are the drawbacks of using Paylocity:
- Inflexible Mobile App Functionality: Some users say Paylocity’s mobile app lacks features found on the desktop version.
- Complex Features: According to reviews new users might find it challenging to learn advanced features.
- Limited Customization: Some users have complained about limited customization options on the platform. This lack of customization might not meet certain organizational requirements.
- Integration Limitations: Some users have encountered limitations when connecting with certain third-party applications.
- Pricing Transparency: Since Paylocity requires direct contact for custom quotes, customers might find it difficult to obtain clear pricing information upfront.
Customer Support of Paylocity
Paylocity provides extensive customer support for employees and administrators regarding HR and payroll needs. Every group has different support options, and it provides several channels for assistance.
Below are the following ways through which you can reach the Paylocity customer support team:
- Paylocity 24 hour Customer Service Phone Number: Clients seeking immediate assistance can contact the Paylocity support team. The support team is available Monday through Friday from 10 AM to 2 PM Central Time.
- Paylocity Email Support: Dedicated account managers are available by email at [email protected] for support.
- Online Resources: The PEAK Knowledge Base offers self-service help with instructions and answers via the "Help" option in Paylocity.
- Training and Guides: Clients access training materials and product tutorials for platform navigation.
Top 5 Paylocity Competitors in 2025
Compare various platforms while researching payroll and HR solutions to determine which one is ideal for your company. Paylocity provides numerous tools, but several competitors offer unique features for various organizational needs.
Here are the 5 best alternatives to Paylocity, each with unique benefits for different businesses.
1. Paylocity Vs Gusto
Gusto is a payroll and human resources software created specifically for small businesses. It provides everything from automated payroll, benefits management, tax filing, talent management, reporting analytics, and employee onboarding.
What sets it apart is its simple interface enables organizations with fewer HRs to manage payroll and compliance. Besides this, Gusto also offers global services to hire, pay, and manage international contractors and employees all in one platform.
2. Paylocity Vs ADP
ADP is known for its payroll services and its human capital management features. Payroll, benefits administration, tax compliance, and HR management tools are just a few of its numerous functions.
It is well-known for its scalability, having served organizations of various sizes, from tiny businesses to multinational corporations. Furthermore, ADP also provides customized solutions for industries such as retail, healthcare, and manufacturing, as well as comprehensive analytics and reporting capabilities.
3. Paylocity Vs Paycom
Paycom is a comprehensive HR and payroll platform that helps businesses of all sizes to manage their workforce. It provides tools for payroll, time tracking, hiring, and benefits in one system.
Paycom enables employees to manage their own HR data, lowering the administrative burden on HR teams. Furthermore, it is an ideal choice for businesses wanting to improve HR operations with reporting tools and compliance.
4. Paylocity Vs Paycor
Paycor is a payroll and HR software suitable for businesses ranging from small to medium-sized. It offers services like payroll processing, time and attendance monitoring, benefits administration, and a learning management system (LMS) for new users.
Based on feedback from users, Paycor is well-known for its strong reporting features and user-friendly interfaces. It also provides specialist solutions for a variety of industries, including healthcare, retail, etc to assist businesses in complying with industry-specific laws.
5. Paylocity Vs BambooHR
BambooHR is a recruitment software suitable for small to medium-sized businesses. It streamlines core HR tasks like employee data management, onboarding, performance tracking, time monitoring, and payroll processing.
Besides this, its performance management tools monitor progress and provide feedback, whilst reporting and analytics provide insights for better decision-making. It includes employee self-service portals and mobile access to provide flexible HR operations.
Is Paylocity the Best Fit for Your Business?
Paylocity is a great choice for businesses needing a full HR and payroll solution that grows with them. It is best useful for mid-sized businesses to large enterprises to reduce administrative work and boost employee engagement.
It also features a modern design and strong reporting tools for HR management. So if you need that too then you should go for Paylocity. Furthermore, small businesses with tight budgets might see their prices as high compared to simpler options.
How Does Paylocity Simplify HR and Payroll Processes?
Paylocity makes HR and payroll easier by automating tasks like tax filings, recruitment, and direct deposits. Its system reduces errors, and employees can access pay stubs and benefits through a self-service portal.
Paylocity combines key HR tasks like recruiting, onboarding, and performance management into one system. From an HR perspective, you can easily hire, and onboard a top talent without wasting time. In addition, it offers tools for time-tracking, attendance, and workforce management easier.
Who Should Not Use Paylocity?
Paylocity may not be suitable for very small businesses or startups needing basic payroll services because of its higher cost and many features. Companies with under 10 employees might prefer simpler, cheaper options like Gusto or Wave Payroll.
Paylocity's complex system may be overwhelming if only basic payroll processing is needed. Businesses with complex international payroll needs may face limitations with Paylocity. Larger companies requiring compliance in multiple countries might consider ADP or Deel. Hence, assess your HR requirements before choosing Paylocity.
Research Methodology
We have collected data from multiple sources and Paylocity’s website to draft our Paylocity review. We intend to help HR and businesses decide whether the whole package of Paylocity HR and payroll is the best fit for which type of business.
Here are the parameters we used in drifting this review on Paylocity:
- Data Collection from User Feedback: We collected data from multiple Paylocity reviews from websites like G2, Capterra, Gartner, etc. This helps us to analyze both Paylocity’s positive and negative feedback to understand common user experiences related to its features, support, etc.
- Feature Analysis and Testing: Perform hands-on testing with the demo version to understand how it works, its features, and its ease of use.
- Competitor Comparison: Compare Paylocity with its competitors like ADP, Gusto, Paycor, Paycom, and BambooHR. We tend to understand that they offer similar sets of features like Paylocity but all of them have their unique capabilities.
- Expert Insights: We did a chit-chat with HRs to understand how well it performs and what are the drawbacks of Paylocity.
Summary: Is Paylocity Right Fit for Your Business?
Paylosity is an all-in-one software that offers complete HR and payroll solutions for businesses. So if your business needs to enhance its operations, boost employee involvement, and ensure compliance with changing regulations then Paylocity is for you.
With this Paylocity review, you may have understood that it provides features like automated payroll, tax compliance, employee self-service portals, HR core, and advanced reporting. So in conclusion businesses needing advanced HR features, employee engagement tools, and integrated payroll will find Paylocity beneficial.
Frequently Asked Questions
1. Is Paylocity Worth the Cost for Small Businesses?
Whether Payloocity is a good fit for small businesses depends on the size and complexity. It has a lot of payroll and HR features, but every small business can't afford it because its pricing is more appropriate for mid-sized to larger businesses.
2. What Makes Paylocity Different from Other HR Software?
Paylocity is known for its innovative UI and employee engagement capabilities. It is an ideal choice for businesses trying to enhance workplace culture.
3. What is Paylocity Good For?
Paylocity offers a unified platform for managing payroll and HR tasks. Besides payroll, it offers features like time tracking, benefits management, and tools to enhance employee engagement.
4. Which is Better, ADP or Paylocity?
Both ADP and Paylocity are better for global companies, offering complete payroll and HR solutions with strong international compliance. However, Paylocity targets businesses by providing advanced audit tools and customizable payroll audits.
5. Is Paylocity Good for Employees?
Yes, Paylocity provides self-service features to help employees manage their information, and access pay stubs, tax forms, and benefits efficiently.
